Federal student loans are exempt from discharge in bankruptcy — or are they?
Student loans are often dubbed the worst kind of debt because they’re notoriously difficult to get rid of — even in bankruptcy. But attorneys across the country are now challenging that conventional wisdom with some success, creating hope for millions of struggling borrowers.
Bankruptcy lawyers are filing cases in states from New Hampshire to Florida, to test strategies with the hopes of establishing paths bankrupt borrowers and their lawyers can use to get rid of or, at least, better manage their debts in the future.
This burgeoning niche practice area — which includes paid seminars and new software programs — comes amid a rise in the share of bankruptcy filers with student debt and growth in their...